Bank of Maharashtra (MAHABANK) Q4 08/09 earnings summary

Executive summary

• FY09 total business reached Rs.87,109 crore, up 21.74% YoY; deposits rose 25.74% to Rs.52,255 crore and gross advances increased 16.84% to Rs.34,817 crore.

• Net profit rose 14.24% to Rs.375.16 crore amid global financial turmoil; gross and net NPA ratios improved to 2.29% and 0.79%, respectively.

Financial highlights

• Total income increased 25.41% to Rs.4,791.58 crore; interest income grew 24.75% to Rs.4,291.56 crore and non-interest income rose 31.48% to Rs.500.02 crore.

• Operating profit grew 17.97% to Rs.793.52 crore; provisions and contingencies rose 21.53% to Rs.418.36 crore, while net profit advanced 14.24% to Rs.375.16 crore.

• Commission, exchange and brokerage income rose 23.70% to Rs.248.83 crore; profit on investment sales was Rs.176.26 crore, versus Rs.78.38 crore in FY08.

Outlook and guidance

• Growth strategy targeted total business of Rs.1,10,000 crore by March 2010, the bank’s Platinum Jubilee year.

• RBI projected FY10 Indian GDP growth at 6%; scheduled commercial bank reference growth was 18% for deposits and 20% for credit.

• Priorities included expanding credit to productive sectors, particularly MSMEs, and completing VSAT networking of non-WAN branches in H1 FY10.